stock (redirected from Equity securities)

Stock

A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.

There are two main types of stock: common and preferred. Common stock usually entitles the owner the right to vote at shareholder meetings and to receive dividends that the company has declared. Preferred stock generally does not have voting rights, but has a higher claim on assets and earnings than the common shares. For example, owners of preferred stock receive dividends before common shareholders and have priority in the event a company goes bankrupt and is liquidated.

Also known as shares, or equity.

Notes:

A holder of stock (a shareholder) has a claim on a part of the corporation's assets and earnings. In other words, a shareholder is an owner of a company. Ownership is determined by the number of shares a person owns relative to the number of outstanding shares. For example, if a company has 1000 shares of stock outstanding, and one person owns 100 shares, that person would own and have claim to 10% of the company's assets.

Stocks are the foundation of nearly every portfolio, and they have historically outperformed most all other investments over the long run.

See also: ADR, Assets, Blue Chip, Corporation, Earnings, Equity, Penny Stock, Shareholder, Shares, Stock Option

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Stock

Ownership of a corporation indicated by shares, which represent a piece of the corporation's assets and earnings.

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stock

An ownership share or ownership shares in a corporation. See also bearer stock, common stock, preferred stock, stock class.